At the request of the parties involved, the president of the Federal Supreme Court (STF), minister Luís Roberto Barroso, transferred to the Court the renegotiation procedure between those involved and affected by the collapse of the dam in Mariana (MG), which killed 19 people and is one of the country’s biggest recent environmental tragedies.
According to the decision, released on Thursday night (24), it will be up to the president of the STF to conclude and approve the reparation agreement for those affected by the disaster. The agreement in Brazil runs in parallel with other discussions in the United Kingdom, which also seek to hold responsible companies accountable.
The request was presented to the Supreme Court by the Union, by the States of Minas Gerais and Espírito Santo, by the Federal Public Ministry (MPF) and by the Public Ministries of the two States, by the Public Defender’s Office of the Union and by the State Defenders’ Offices, by Samarco Mineração S/A and by the two companies that control it – Vale and BHP.
On Friday, a meeting is planned at Palácio do Planalto to confirm the reparation agreement, which will be attended by President Luiz Inácio Lula da Silva, the president of the STF, federal and state authorities and company representatives.
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In the decision, Barroso took into account the argument that, in this case, there is a potential federative conflict that could attract the constitutional jurisdiction of the STF. This is because the dam collapse affected several entities of the Federation (Union, States and municipalities) and involves repairing large-scale environmental and social damages, which impact communities and people in vulnerable situations.
Furthermore, according to the president of the STF, the conclusion of the agreement with approval by the Supreme Court will be able to avoid the continued judicialization of various aspects of the conflict and the prolongation of a situation of legal uncertainty, nine years after the disaster.
New management emphasizes that “safety and operational excellence are non-negotiable elements of the journey”
Vale had announced that it would add R$5.3 billion, or US$956 million, to the liabilities associated with repairs for the collapse of a mining dam in Mariana (MG) in its third quarter financial results.
The new estimate was calculated while Vale, BHP and Samarco evaluate, together with federal authorities and the States of Minas Gerais and Espírito Santo, the general terms for a definitive repair agreement for the rupture, with a total value of R$170 billion. The agreement should be signed this Friday (26).
The total amount considers payments already made by companies, new resources and obligations still borne by mining companies.
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“We hope to sign the Mariana agreement very soon, aiming for a definitive resolution that will, above all, benefit the people impacted and society, through a mutually beneficial agreement for all interested parties”, said the president of Vale, Gustavo Pimenta.
In his first financial report since taking command, Pimenta also highlighted that his management will strive to transform Vale into a “more agile and efficient company, promoting innovation and a culture of performance”, pointing out that “safety and operational excellence are non-negotiable elements of this journey.”
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Additionally, Pimenta stated that the company’s strategy will focus on delivering a portfolio of superior products, with a greater focus on the customer. “In iron ore, we will accelerate our supply of high-quality products, while in base metals, we intend to continue to grow, especially in copper.”
Finally, the executive stated that he is committed to improving the company’s institutional relationships, ensuring that Vale will leave a positive impact on people and the environment.
Mariana agreement and ore price reduced the company’s profit to US$ 2.4 billion in the 3rd quarter
Vale reported this Thursday (24) that the financial reserve to cover compensation payments related to the collapse of the Mariana dam contributed to the 15% drop in net profit in the third quarter of this year compared to the same period of the year past. Another factor cited is the drop in the price of iron ore.
Even so, the company – one of the largest iron ore producers in the world – recorded a net profit of US$2.41 billion in the quarter ended in September, well above the average estimate of analysts consulted by LSEG, of US$1. 65 billion.
Vale’s president, Gustavo Pimenta, highlighted that the company’s iron ore production in the third quarter was the highest in more than five years.
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The company published last week that its iron ore production grew 5.5% in the third quarter compared to the same period in 2023, with operational improvements in the S11D mining complexes, in Pará, and Itabira and Brucutu, in Minas Gerais.
Vale produced 90.97 million tons of iron ore between July and September. The average price, however, was US$90.6 per ton, a drop of 14% compared to the same period last year.
Expanded net debt grew 6% in the third quarter compared to the same period in 2023, to US$16.47 billion.
